Mamdani's early moves as mayor clash with affordability pledge: 'Ripple effects are significant'

Mamdani campaigned on making New York more affordable, but his early delivery-app crackdown has business experts warning new mandates will push costs onto customers.

Zesty is now in beta in San Francisco and New York as DoorDash tests and refines its personalized matching experience. (iStock)

"We know affordability is not just about the cost of goods — it’s about the dignity of work," Levine told companies including DoorDash, GrubHub and Uber. "Today’s lawsuit against Motoclick is not just an action against one company, it’s a warning to every app-based company from this Administration. You cannot treat workers like they are expendable and get away with it. We will seek full back pay and damages. We will seek full accountability."

Mamdani pointed to a recent report put out by his Commissioner of the Department of Consumer and Worker Protection (DCWP) Sam Levine, which showed disobeying city mandates going into effect later this month, requiring apps to give the opportunity for customers to tip before or at the same time that an order has been placed, significantly impacts the amount of incoming tip revenue. Levine's report that Mamdani touted estimates alternative tipping frameworks, such as only allowing tips upon completion of a delivery, have altered tipping revenue by an estimated $550 million per year.

Mamdani also stood by in tacit agreement during the press conference as delivery-app worker advocates called for an increase to their already mandated minimum wage they have that is approximately $4.50 higher for delivery-app drivers than the city's base minimum wage of $17 per hour. The workers said they wanted a mandate that they get paid $35 per hour, to which Mamdani replied: "closed mouths don't get fed."

Mamdani campaigned on raising the base minimum wage to $30 per hour for all New Yorkers by 2030.

Signage reading ‘Days of a New Era’ is juxtaposed behind New York City Mayor Zohran Mamdani during a press conference he attended about reining in ‘junk fees.’ (Adam Gray/Bloomberg via Getty Images)

When reached for comment about the discrepancy between Mamdani's message of making New York City more affordable for everyone, versus his push to protect delivery-app worker rights that could impact consumer pricing, a New York City Hall spokesperson argued that "the insinuation that putting more money in the pockets of delivery workers undercuts affordability is absurd."

"Delivery Workers are important members of our city’s economy, and deserve to be paid fairly – anything less is unacceptable," the spokesperson added. "As Mayor Mamdani continues to stand up for everyday New Yorkers and actualize his ambitious agenda to make New York City truly livable for families. Affordability has been, and will continue to be, a guiding light."

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But DoorDash's head of public policy for North America, John Horton, said that ensuring delivery-app workers "earn double what many first responders in the city make" is not a policy solution they believe will make New York City more affordable. Currently, a local fire technician and emergency medical services union in the city is in the midst of a public awareness campaign to raise their wages because they make less than delivery-app drivers at $18.94 per hour.

Delivery-app workers in New York City must be paid $21.44 per hour according to local worker protection mandates.  (iStock)

"A thriving New York will take a partnership between elected officials, the business community and workers to ensure we are all working in the best interests of New Yorkers in the midst of the city's affordability crisis," Horton added. 

Fox News Digital followed up with Mamdani's campaign to inquire about the complaint that EMS and some firemen in the city are making less than delivery-app workers, but did not receive a response in time for publication.

https://www.foxnews.com/politics/mamdanis-early-moves-mayor-clash-affordability-pledge-ripple-effects-significant